Alliance Group to repay wage subsidy in full

Alliance Group's venison processing plant in Lorneville
Alliance Group's venison processing plant in Lorneville Photo credit: Supplied / RNZ

Alliance Group has joined the growing list of firms repaying the wage subsidy.

Alliance received $34 million from the subsidy and had already repaid $21m. Group chair Murray Taggart said it is now in a position to repay the balance.

"From the outset, Alliance has been clear we would only use the wage subsidy in the way it was intended by Government and our previous re-payments reflect this commitment."

Last month Alliance Group announced a before tax profit of $7.5m, down from $20.7m in 2019 due to one-off costs.

The company also received $1.9m from the Government's Leave Support Scheme to support employees that had to self-isolate or were unable to work, which it will not repay.

The Warehouse Group this week announced it was repaying the $68m it received from the wage subsidy scheme.

It had come under fire from unions, commentators and politicians including the Prime Minister for taking the money, proceeding to lay off staff then reporting a full year profit of $44.5m.